Project Performance Management Scorecard
The Adjusted Balanced Scorecard[1] is based on the balanced scorecard develop by Robert Kaplan and David Norton[2]. It is used to enhance a project effectiveness from a project performance Management view.
Contents |
Theory
Balanced Scorecard
The idea of developing the tool came from that according to Robert Kaplan and David Norton it is impossible to measure efficiency with a narrow number of indicators. At the same time a company shouldn't have a large number and complex indicators it will lead to a lack of overview and giving a high possibility that the will not be used.
The Balanced Scorecard (BSC) is a usefull tool to help companies put their strategy into more comprehensive objects and Key performance indicators(KPI's).
It will also help the company avoid a to short sighted perspective. it is able to give companies a robust measurement and management system. With 3 elements that have a measurable indicators: Financial, Customer and Internal business, and at the same time a more soft type of indicators in the ability to learn and Growth.
The first edition consists of fire elements:
- Financial
- Custormer
- internal business process
- Learning and Growth
But it was build for a non-divisional organisation and was hard to implement in complex structure companies as well as public sector and non-profit organisation, and where therefore abandoned quickly [3]. The next generation gave a new measurement where they where based on strategic objective that could be linked together as a cause and-effect chain. This is done be linking the different KPI's in the different areas together. There
Adjusted Balanced Scorecard
In order to make the BSC more useful for Project perspective a change in view is needed. So instead looking at customers the ABSC will look at the stakeholders for the project. The new four key points are:
- Financial
- Stakeholders
- Internal Business
- Learning and Growth
To make the ensure the succes of using the the tool a series of implementations steps are required. These steps is used to enhance the learning process form the tool.
- Make the Project objectives and the link to Project life cycle(PLC) if possible.
- Establish the project management KPI's
Applications
Limitations
Annotated Bibliography
References
- ↑ [Project performance mangement using balanced scorecard(BSC) approach] http://sarasconsulting.com/downloadfiles/Manage%20project%20performance%20using%20balanced%20scorecard.pdf
- ↑ [Conceptual Foundations of the Balanced Scorecard] http://www.hbs.edu/faculty/Publication%20Files/10-074.pdf
- ↑ [Balanced Scorecard] https://en.wikipedia.org/wiki/Balanced_scorecard
